In our Marketing leaders we bring you the thirty-third episode: “What is a “partner channel” and how does it work to generate demand?“
Today, Pau Valdés interviews Marc Antoni Macià, holder of a double degree from Pompeu Fabra University (economics and business management), holds an MBA from IESE Business School and other graduate studies from Chinese University of Hong Kong and the Paris Institute of Political Studies.
Marc is co-founder and COO of NoviCap, a major fintech that has developed the first 100% automated risk analysis algorithm. The company is based in Spain, the Netherlands and the United Kingdom, from where it provides financing solutions to organizations in more than 35 countries.
In the complex B2B ecosystem, NoviCap has managed to excel and succeed over time through one of its oldest and most effective marketing channels. It is partner channel, a strategy that generally brings excellent results to B2B companies, as long as you know how to implement it correctly.
Then Marc and Pau talk about …
What is a partner channel and how does it work?
A channel of partners or collaborators is created when a company establishes alliances with other organizations in the same field (but without being a competition) so that they help it to attract potential customers. In this sense, we can say that it is an indirect customer acquisition channel.
For this, the company in question and its employees must share the same type of clientele, which allows them to join forces in their attraction.
There are many ways to manage a partner channel. In the case of NoviCap, the technique that has worked best for them is to partner with companies that know they can add more value to their own customers by offering or recommending NoviCap products in a complementary way. to theirs, because in this way these customers are able to have a wider and more varied catalog of solutions, able to satisfy your different financial needs. In this way, the partner channel becomes a win-win for everyone involved.
Two very common mistakes when creating a partner channel
To establish a partner channel you should think of companies that can help you increase your market share. As we mentioned before, these businesses should be in the same business category and share the same type of customers, but not competing with your business.
However, even taking these premises into account, it is possible to make some errors in the implementation. Let’s see:
One of the most common mistakes is to think that all companies that meet the above premises can be your partners. If you have this idea in mind, you will end up spending a lot of time and effort trying to build alliances with organizations that are not really compatible to be your collaborators. This is due to the fact A key to the success of this type of strategy is that your partners must find an advantage for their own customers. when you offer or recommend your products.
For example, NoviCap has attempted to ally with management companies, which perform functions such as managing the accounts of other companies. In theory, NoviCap and agencies share the same type of clients, but in practice, it turns out that agency clients are not interested in financing solutions. Therefore, NoviCap solutions add no value to branches.
Another very common mistake, which emerges from the previous one, is to insist on companies incompatible with your partner channel by offering them an economic participation. Keep in mind that when an organization doesn’t find value for their customers by offering your products, they won’t make any effort to recommend you, even if you offer to pay a commission.
When this happens, you will continue to think that Company X is recommending your solutions because you offered them a commission per sale, but the truth is, it is very likely that this company will never end up recommending you to anyone., which will mean a great waste of time for you.
How to effectively manage the partner channel?
Creating and maintaining a partner channel is a strategy that requires special dedication. After all, consider the partner as a kind of secondary client, because it is necessary to develop recruitment and sales tactics to forge alliances with as many employees as possible, as well as to retain them over time. The latter is really a key element, since a dissatisfied partner can go and establish an alliance with your competitors.
Considering the level of commitment that must be acquired with this strategy, what NoviCap has done was to create an internal department solely and exclusively to manage the partner channel. Thus, the company has a direct sales service (the traditional service) and an indirect sales service (the partner service).
This department of the partner channel is made up of people with different professional profiles, which makes it possible to have executives specialized in each of the different types of existing collaborators.
What’s the business benefit of having your own podcast?
Besides the partner channel, another resource that has brought great results to NoviCap is the production of its own podcast called Talk to leaders, which has been powerful enough to strengthen the brand image, consolidate the market leading position and generate confidence in the industry.
Talk to leaders started in 2020 and has already become a benchmark in the industry. The objective of this podcast is to interview different business leaders to discuss topics of great interest to entrepreneurs, managers and executives.
The most interesting thing is that in NoviCap they have combined the podcast tactic with that of the partner channel, this by interviewing several CEOs of organizations that are collaborators of NoviCap. In this way, the podcast serves to give partners greater visibility, which at the same time translates into greater visibility for NoviCap.
As we said, the partner channel must be win-win.
On the other hand, the creation of a podcast is also an effective inbound marketing technique for customer acquisition, We therefore recommend that you listen to chapter 20 of Talking to leaders, in which Marc interviews Pau, CEO of InboundCycle.
Also, if you want to know real statistics on the impact that inbound marketing can have on your business through tactics like these, we invite you to download our free 2021 Inbound Marketing Study. In this document, we give you a detailed analysis of the results that companies of different industries and sizes can achieve when implementing an inbound marketing methodology.
Finally, listen to the detailed explanation of these topics right now or download the episode and listen to it when you feel like it. You can also watch all episodes here podcast Market managers.
If you have any questions on the topic or have any questions For Marc or Pau, we encourage you to leave it in the comments section so they can resolve it for you.
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